How much will additional Revenues from Winnipeg increase Cap?

Discussion in 'Fugu's Business of Hockey Forum' started by Uhmkay, May 31, 2011.

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  1. Uhmkay

    Uhmkay Tryamkin = New Chara

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    As it stands, the current Salary cap is at $59.4 million and the floor is at $43.4 million. According to Forbes (http://www.forbes.com/lists/2010/31/hockey-valuations-10_Atlanta-Thrashers_317422.html) their revenues are about $71 million.

    The Revenues of the Edmonton Oilers are only bringing in $87 million, however as it is right now they do not own their building, and I'm not sure if they keep the revenue from food/beverage sales, or if that is done by a completely different company. The city of Edmonton also has a metro population of about 1.1million compared to Winnipeg that sits around 700,000.

    According to the Oilers Forbes (http://www.forbes.com/lists/2010/31/hockey-valuations-10_Edmonton-Oilers_314229.html), the Flames have an additional $15-$20 million in revenue due to other events being in the building that they get to keep. These additional revenues however would not go towards the cap figures obviously.

    I am going to guestimate that the benefits of owning their own building in Winnipeg will roughly balance out the fact that their attendence compared to Edmonton will be about 1000 less per game based on seating capacity.

    I guess the question is - How much more additional revenue should we expect from the franchise once it moves to Winnipeg? I'm assuming that a quick calculation of 54% of that additional revenue divided by 30 teams would give us a rough estimate of how much additional cap space this move would give the NHL?

    Does that sound reasonable? Anyone care to guess on how much that might be?
     
  2. danishh

    danishh Registered User

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    sens are at 96, oil at 87 according to forbes.

    expect winnipeg somewhere in the middle.

    so basically a 20M increase over atlanta, or a 350k-400k increase in the cap.
     
  3. BigFatCat999

    BigFatCat999 I am a burner account

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    I'm not too sure on that. most of the commentary I have heard has been a Nashville level team
     
  4. Firestorm

    Firestorm Registered User

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    I would find it funny if WPG need revenue sharing...
     
  5. danishh

    danishh Registered User

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    i would not be surprised if there is a stipulation in the deal that winnipeg is ineligible for revenue sharing for a certain amount of time.
     
  6. Confucius

    Confucius Registered User

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    I'd bet anyone, if they meet their ticket sales goals, they won't be a revenue sharing team for the first 5 years anyway.
     
  7. Uhmkay

    Uhmkay Tryamkin = New Chara

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    They will be more than Nashville. Their average ticket prices will likely be a bit higher and they'll sell out every game.
     
  8. kdb209

    kdb209 Registered User

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    VERY unlikely.

    Revenue Sharing is now a subject of collective bargaining - and cannot be modified without the consent of the NHLPA.

    There is no way the NHLPA consents to anything that would lower the potential payroll of a team.
     
  9. BigFatCat999

    BigFatCat999 I am a burner account

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    For now. $82 a ticket average
     
  10. triggrman

    triggrman Registered User

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    How many suites does MTS have? I know it's a small arena, while the $82 average seems a bit high when you look at the ticket range, it doesn't look that bad. Selling out every game shouldn't be that tough with only 15k seats. Nashville averaged 15.8k in paid attendance this season, so of course a Canadian market should easily be able to match that.

    Suites revenue in Nashville really help, with having 70 suites and those are rented out for the entire year, not just for hockey events but suite owners have them for every event, which here includes CMT music fest and the CMT awards.
     
    Last edited: May 31, 2011
  11. BigFatCat999

    BigFatCat999 I am a burner account

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  12. guyincognito

    guyincognito Registered User

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    Depends what they gate. I'm not really sure where a significant outside cash flow is going to come from.

    They own the building so that's a big +. I would guess in the range of $85M. (for their revenue, lol, not increased value over Atlanta) Their ticket prices are high but the "lock-in" prices (which you figure almost everyone is going to be paying) aren't that insane.
     
  13. Hugh Mann*

    Hugh Mann* Guest

    LOL @ the OP. Never trust a private business' own accounting. Any company can cook the books (legally) to post whatever numbers are politically expedient. Many times in the past pro sports clubs have posted "losses" to extort the taxpayers out of funds for new arenas and whatnot.
     
  14. kurt

    kurt the last emperor

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    Is the relocation fee (I assume there is one) considered "league revenue"?
     
  15. LadyStanley

    LadyStanley RIP Fugu

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    Yes, but not for HRR calculations. (Relocation, territory indemnifications are not explicitly included. One of the things the union may want to change in new CBA.)
     
  16. jumptheshark

    jumptheshark Rebooting myself Sponsor

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    depends if the team makes money
     
  17. GSC2k2*

    GSC2k2* Guest

    The MTS Centre has 48 suites - 46 regular suites and 2 "party suites" (game by game rentals).
     
  18. Butch 19

    Butch 19 Go cart Mozart

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    LOL @ this post. Never trust the claims of a union that is negotiating for its members.

    You make it sound like it is impossible for a private business to lose money.
     

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